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Go for Beijing Currency

By Cde.Naftali Kambungu
Wherefore henceforth will some economies of developing countries reach a milestone if they are not using Chinese yuan. Most of the African countries has known China during their liberation struggle era since she was a helping hand for many countries.

Moreover now that we are in a new era of economic struggle,we have to find a new way forward. And all things are of those powerful economies namely USA,China,United Arab Emirates,Saudi Arabia etc and small economies are always aligning themselves with those powerful economies.

One of the African countries that I urge to take the initiative of in using the Chinese currency,the yuan is Zimbabwe.In the middle of 2012 a number of Central African banks were given access to yuan-dominated bonds by the China Development Bank Corporation(CDB).

The CDB,the state-owned lender and a supporter of government projects and Chinese companies looking to expand overseas,set aside part of it,s three-year dim sum bonds sold recently for African Central banks.Central banks of Nigeria and Tanzania made the biggest purchase of the bonds among their African counterparts.I am also caution ing Zimbabwe not to use alot of yuan until such a time that is it becomes commonplace in the global economy.

As for Namibia there is no need even to consider the yuan because we are enjoying the privileges attached with the South African Rands in global market.The other country I believe should take this initiative in using yuan is Zambia.China,s investment in Zambia is more than US$4 Billion,chiefly in mining,and with increased Chinese interest in retail and other sectors,this figure posed to increase.China imports copper from Zambia,tobacco from Zimbabwe,gold from South Africa,diamond from Sierra Leone etc.

There is strong believe that the US dollar will loose it,s regime and supremacy in the Africa continent to Chinese yuan. African countries are increasingly looking to alternative currencies besides US dollars. Do you want me to say that the mighty dollar is a dominance. Angola has requested oil and gas companies to pay tax revenue and local contracts in kwanza,it,s currency rather than in US dollars. Mozambique wants companies to exchange half of their export earnings for meticais,hoping to pull more of the wealth in vast coal and natural gas deposits into the domestic economy.Ghana is seeking similar ways to reinforce the primacy of domestic currency after the cedi plummeted more than 17 percent against the dollar in the first six months of this year.The sternest steps comes from Zambia, a copper-rich country in Southern Africa where the central bank has banned US dollar-denominated transactions.

And again for Namibia what we only need to do is to negotiate a fair deal with South Africa so that our Namibian dollar can also be legal tender in South Africa.As much as we have South African rands legal tender here in Namibia,the same should be done to Namibian dollars in South Africa. The Botswana Pula seems not to affected much by dominant currencies,but again their situation is the same like that of Namibia.Botswana Pula with it,s strength is not legal tender in South Africa while Rands is a commonplace currency in Botswana domestic economy.

What happen to the idea of one currency system for SADC countries.That could solve most of economic challenges we have in SADC.There is a talk now in the BRICS about moving towards using the yuan and I know that it may take some times but is good idea still. The only thing is that South Africa is the only country in Africa that is a member of BRICS to brings due her economic status.And what will happen to Namibian dollar,s dependence on rands,when South Africa starts using yuan?

And Namibian government must put strong laws which direct all the Asian business people to plough back into the community.They must save their money into local banks.The Asians like any other foreign investors must invest int the communities like building school,clinics etc.

Cde.Naftali Kambungu is SPYL National Executive Committee and Central Committe Member


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